Whether nomination for retiral benefits made by husband in favour of second wife is valid?
The Apex Court in Smt. Sarbati Devi and another Versus Smt. Usha Devi, AIR 1984 SC 346, held that a mere nomination made in an insurance policy does not have the effect of conferring on the nominee any beneficial interest in the amount payable under the life insurance policy on the death of the assured. The nomination only indicates the hand which is authorised to receive the amount on the payment of which the insurer gets a valid discharge of its liability under the policy. The amount, however, can be claimed by the heirs of the assured in accordance with the law of succession governing them.
This Court in Shakuntala Devi (Smt.) Versus Executive Engineer, Electricity Transmission Ist U.P. Electricity Board, Allahabad and another, [(2001) 1 U.P.L.B.E.C. 8691], while dealing with two wifes wherein the nomination was in favour of the second wife it was held that it cannot defeat the claim of the legally wedded wife, only legally wedded wife is entitled to retiral benefits and provident fund and appointment under Dying-in-Harness Rules.
Similarly, view was expressed in Poonam Devi (Smt.) Versus Chief Engineer, Electricity Board and others, [(2004) 3 U.P.L.B.E.C 2292].In G.L. Bhatia v. Union of India and another, 2000(1) ESC 135 (SC), the Supreme Court held that if a nomination is made contrary to statutory provision, it would be inoperative. In the facts of that case, the husband of the deceased employee claimed family pension while nomination was not in his favour. The authorities rejected the claim of the husband for the reason that he was staying separately from the wife and thus was not entitled to family pension. The Apex Court held that the husband was entitled to family pension, where the rights of the authorities are governed by statutory provisions, the individual nomination contrary to the statute will not operate.
Allahabad High Court
Manno Singh vs State Of U.P. & Others on 11 September, 2014
Bench: Suneet Kumar
Case :- WRIT - A No. - 23388 of 2012
Citation:I(2015)DMC 654 ALL https://www.lawweb.in/2016/07/whether-nomination-for-retiral-benefits.html
